Technical bids related to the power distribution privatization of the Union territory of Chandigarh are scheduled to open on March 22, 2021, according to reliable media reports.
It is learnt that the following seven entities are in the race for the proposed privatization:
- Sterlite Power
- ReNew Wing Energy
- NTPC Electricity Supply Company
- Adani Transmission
- Tata Power
- Torrent Power
- Eminent Electricity Distribution (CESC Group)
As per the standard practice, financial bids of those technically qualified will be opened, eventually leading to selection of the power distribution licensee.
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The process of completely privatizing power distribution in the UT of Chandigarh has been in the making since November 2020 when bids were first invited.
Here is a brief chronology of events:
- May 2020: The Union power ministry decides to completely privatize power distribution in all the Union territories. The process starts off with Chandigarh.
- November 2020: EWEDC floats invitation for bids from potential entities to acquire complete control on Chandigarh’s power distribution. EWEDC (The Electricity Wing of Engineering Department of UT Administration of Chandigarh) is a deemed licensee under Section 14 of the Electricity Act 2003, and is carrying out the business of transmission, distribution and retail supply of electricity in Chandigarh.
- December 2020: The Punjab & Haryana High Court issues a stay on the Centre’s proposal to privatize power distribution in Chandigarh. This was done by admitting a plea submitted by UT Powermen Union, Chandigarh. The court felt that the privatization was “unjust and illegal” for several reasons.
- January 2021: Supreme Court vacates the stay, allowing the privatization process to continue.
- February 2021: Bids close for submission on February 8, 2021. Out of the 20-odd entities that purchased the documents, six entities submit their technical and financial bids.
- March 8, 2021: EWEDC extends bid closing date to March 18. One more entity (Eminent Electricity Distribution) submits its bid, taking the total number of bidders in the fray to seven.
- March 22, 2021: Technical bids scheduled to open.
(Featured photograph is a drone image of Chandigarh city. Source: https://chandigarhdistrict.nic.in/)
